Indonesia has accused the European Union of discrimination against its palm oil exports (Mohd RASFAN)
<p>Jakarta (AFP) – Indonesia has filed a World Trade Organization lawsuit against the European Union over plans to phase out palm oil-based biofuel for cars, the trade ministry said.</p><p>The action could escalate a trade dispute between Indonesia — the world’s top palm oil producer – and the EU, which plans to end its use of biofuels by 2030, citing concerns over widespread deforestation caused by the sector.</p><p>The EU earlier imposed duties on imports of subsidised biodiesel from Indonesia saying it was needed to level the playing field for its producers. </p><p>In response to what it called "discriminative" policies against its key palm oil exports, Indonesia said it filed a complaint with the WTO last week.</p><p>"Indonesia officially sent a request for consultation on December 9, 2019 to the EU as the initial step for the lawsuit," Trade Minister Agus Suparmanto said in a statement Sunday.</p><p>Neighbouring Malaysia, the world’s second-biggest palm oil producer, has also threatened WTO action against the EU. </p><p>Teresa Kok, the minister overseeing Malaysia’s palm oil sector, told AFP on Monday that she will head to Europe in March, and a challenge will not be filed until after then. </p><p>She said she wanted to try to convince European officials to change course on her trip. </p><p>"I want to give my trip a chance and see whether I can avoid filing the case at the WTO," she added.</p><p>Palm oil is the world’s most widely used vegetable oil and a key ingredient in a wide range of products from food to cosmetics.</p><p>But environmentalists say it drives deforestation, with huge swathes of Southeast Asian rainforest logged in recent decades to make way for palm plantations.</p><p>Iman Pambagyo, Indonesia’s director general for international trade negotiations, said Jakarta had previously tried other bilateral avenues to reach an agreement, without success.</p><p>"We need to assert Indonesia’s stance on EU policy," Pambagyo said, referring to the WTO complaint, and adding that he hoped for a "best solution".</p><p></p>

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.